Sources say Arm IPO of the United States is pursuing a valuation of more than $54.5 billion.

CTOnews.com Arm, a chip design company owned by SoftBank Group, announced its IPO pricing last week, planning to issue 95.5 million American depositary shares at a price of $47 to $51 per share. It would be the largest such deal in the United States this year.

Arm will get plenty of investor support to reach the highest valuation in its IPO indicative range-$54.5 billion, according to Reuters.

Arm is discussing the possibility of raising the price range ($47 - 51/share) given the IPO's oversubscription and trying to exceed the $54.5 billion valuation, sources said.

Arm is also considering keeping its current pricing range unchanged and pricing the IPO at the upper end of the current range or higher, which would also result in a valuation above $54.5 billion, the source added.

However, the source said Arm would not issue more shares because SoftBank wanted to retain a 90.6 percent stake in Arm after its planned IPO of about $5 billion.

A decision on whether to raise the pricing range will be made in the next two days, depending on some key investor orders on Monday, a person familiar with the matter said.